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PENNSAUKEN, N.J.-J&J Snack Foods Corp. said it expects insurance to cover a settlement it made last month with a former male employee who sued the company, alleging his male supervisor sexually harassed him.
Last month, a jury in a Los Angeles trial court awarded the former employee $1.7 million in compensatory damages and $2.5 million in punitive damages.
The company said it later settled the same-sex sexual harassment case for "substantially less" than the $4.2 million award, but would not disclose the amount.
Dennis G. Moore, senior vp and chief financial officer of J&J, said the company expects its employment practice liability insurance policy to cover the entire settlement, even though the amount exceeds the policy limit.
"The insurance company had the opportunity to settle the case within the policy limits but did not," he said, declining to identify the company's insurer.